shopping occasion segmentation
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Jeffrey Maloy
Senior Vice President
Copernicus Marketing Consulting and Research
Wednesday, May 23, 2012
Mission Possible:
Profiling Shopping Occasions for
Retail and Channel Partners
Who Am I?
Jeffrey Maloy Senior Vice President Copernicus Marketing Consulting & Research
Leading our CPG practice Former Director of Marketing, with multiple brand and shopper marketing assignments. Developing relationships with clients such as Kraft, P&G, Nestlé, and Hershey’s. Helping my clients develop and execute transformational shopper marketing strategies
JEFFREY MALOY, SVP
(203) 831-2375
Jeff.Maloy@copernicusmarketing.com
Why focus on occasions?
People are busier than ever
Pre-trip planning is up
Of shopping trips are occasions-based
(buying with occasion in mind)
57%
4
Consumers and Shoppers are often different groups, requiring different marketing
strategies.
Consumers Shoppers
Focus:
How, when, where, why
consumers use/consume the
category
How, when, where, why shoppers
shop/buy the category
Primary End
User:
Consumer Insights
Brand Marketing
R&D
Shopper Insights
Shopper Marketing
Account Teams
Key
End Uses:
Marcomm
Innovation
In-store,
Path-to-Purchase
influencers/tactics 5
The key variables in defining a shopping occasion:
Mission
Location
Navigation
Why they shop?
Where they shop?
How they shop?
6
A shopping occasion segmentation will identify the types of shopping occasions that
exist—and their relative sizes
Collect data on several
recent shopping occasions
via diary (or mobile app) X 2,000 respondents = 6,000 shopping occasions
Occasion 3
Who? What? When? Etc…
Occasion 2
Who? What? When? Etc…
Occasion 1
Who? What? When? Etc…
Segment into 5-10 shopping ―typologies‖ based on
trip mission, location, and navigation.
7
When probing on occasions, be very thorough in your line-of-inquiry
When:
Day of week?
Time of day?
Who:
Who were you with?
Why:
What attributes and benefits
are you looking for from the
store and/or specific products?
Where:
Channels, Retailers, Websites
Pre-tail:
What ―drivers‖ started the
shopping process?
What sources did you
consult?
Did you make a list?
Did you talk to friends,
family, colleagues, about
it?
Retail:
Where did you go first,
second, third, etc.?
What did you consider
buying, at each stop?
How long did you spend in
each section?
Key in-store influencers
during trip?
What was the ―market
structure?
When/where did ―brand‖
play in the decision-making
process?
Post-tail:
Did you register any
products?
Did you tell anyone (face-
to-face and/or via social
networks)?
Did/will you review the
product?
8
Shoppers experience many types of shopping occasions
It is imperative for Shopper Marketing to understand these occasions, in order to build
actionable programs:
9
Bunker
Mentality
Weekly
Replenishment
Just In
Time
Dash for
Deals
Treasure
Hunt
Different on: Sizing (opportunity) Trip mission (needs/drivers) Location (channels) Navigation (shopping behaviors along P2P)
Frequent Infrequent
The occasion will be different in terms of sizing and opportunity
It is imperative for Shopper Marketing to understand these occasions:
10
Bunker
Mentality
Weekly
Replenishment
Just In
Time
Dash for
Deals
Treasure
Hunt
Frequent Infrequent
% of Trips 31% 24% 23% 11% 11%
% Spent 18% 36% 18% 17% 11%
High Frequency
Low Spending
High Frequency
High Spending
High Frequency
Moderate Spending
Low Frequency
High Spending
Low Frequency
Moderate Spending
When: Last Minute Weekly Weekly Monthly
No Set Pattern
(rainy day)
Why: • Immediate
need due to
out-of-stock
• Fill cupboard
for week, get
items on list
• Take
advantage of
hot deals
• Stock-Up on
key staples
• Browsing for
entertainment
value
Needs: • Store located
close to home
• Easy-to-find
item(s)
• Get in/out
quickly
• Product variety
• Reasonable
prices
• One-stop
shopping
• Convenient
store layout
• Special
promotions
• Accepts
manufacturers
coupons
• Staple goods
• Bulk sizes
• Low prices
• Enjoyable
• Shopping
experience/
environment
• Unique, hard-
to-find items
The different types of occasions will cater to different shopper missions
Just In
Time
Dash for
Deals
Bunker
Mentality
Treasure
Hunt
Weekly
Replenishment
M I S S I O N
11
The different types of occasions will occur in different channels
Bunker
Mentality
Just In
Time
Dash for
Deals
Treasure
Hunt
Club Store Grocery
Supercenter
Drugstore
C-Store
Grocery
Dollar Store
Club Store
Online
Weekly
Replenishment
L O C A T I O N
12
It is important to understand the shopper journey during each type of occasion and
the key influencers and touch points for each
Just In
Time
Pre-tail
(Before shopping)
Retail
(In-store)
Post-tail
(After shopping)
Make List
Review circulars
Online research (product
specs, prices, etc.)
Perimeter and in-aisle
Coupons
Features, displays, TPRs,
sampling
Shopper card
Loyalty programs
Whew!
N A V I G A T I O N
Weekly
Replenishment
13
In and Out Oh shit!
Specifically, it is important to understand the shopper marketing tactics and/or
programs that are influential during each step of the path-to purchase.
Pre-tail:
Advertising
Word-of-Mouth
Circulars
Digital
Direct Mail
Retail:
Displays
Signage
Sampling
Manufacturers Coupons
Packaging
Promotions
Retail-tainment
Shopper Card
On-Pack Offers
Post-tail:
Check-Out/Bounce-Back Coupons
Rebate Programs
Product Registration
Loyalty Programs
Customer Reviews
In-Pack Offers
14
Mobile devices have changed the shopper journey and path-to-purchase
Have used a smart phone
while shopping in store:
77% at beginning of trip
61% in the middle of trip
43% at the end of trip
70%
15
As a result, nowadays, mobile devices are being utilized throughout the path to purchase
Pre-tail Retail Post-tail
Mobile Advertising Mobile Coupons Entertainment
Search QR Codes Registration and
Loyalty
Price Comparison Shopkick Social Media
Store Locator Foursquare
Deals and Offers
16
It is important to understand the linkage between shopping occasions and consumption
occasions
Trip Missions
(why they shop)
Consumption Occasions
(why they use)
Need to understand the
intersection
17
You should try to connect the consumption occasion and trip mission
Size the ―cells‖ in grid below, and identify key products purchased/consumed
Consumption Occasions
Breakfast Lunch Snack Dinner Winddown
Trip
Mis
sio
n
Imm
edia
te
Nee
d
$ $ $$ $$$$
Reg
ular
Rep
leni
shm
ent
$$ $$ $ $$$ $
Lo
ng
-ter
m
Sto
ck-u
p
$ $$$ $ $
Immediate Need Dinner = Easy Meal Solution:
Mom shopping for products for tonight’s family dinner.
Low/no preparation required.
Meal whole family enjoys.
18
By understanding the underlying need and ―market basket‖ during these occasions,
retailers and manufacturers can develop powerful shopper marketing tactics and
programs (e.g., cross-promotions)
Identify Need: Conduct Market Basket
Analysis:
Deliver Shopper-Centric
Solution
Easy meal solution Buy DiGiorno,
Get Free 2-Liter Soda
19
Sources:
Retail POS
Homescan Panel Data
Shopper Card Data
Survey Data
The shopping occasions differed in terms of trip mission… and sizing…
In the Spirit Passout Buy Liquidation
When: Late Sept., early Oct. Week of Halloween After Halloween
Why: Get in holiday spirit
Kids’ ―Nag factor‖
Trick-or-Treat passout
Don’t want house to get egged
Self-consumption (candy)
Stockup for next year
(decorations, costumes)
Needs:
Wide variety of merchandise
Fun, seasonal set
New/novel products
no one else has
Fun shopping experience
Good selection of candy
Convenient location
Low prices
My favorite brands
Reusable merchandise
Great deals
% of Occasions: 31% 47% 22%
% Merchandise
Spending: 49% 39% 12%
Pre-Season Post-Season In Season
20
Business Objective: To maximize sales of Halloween merchandise throughout the season (roughly Sept 25 – Nov 5)
Research Objective: Understand how/when/where/why shoppers shop for Halloween merchandise
… and in terms of location shopped... and in terms of merchandise purchased.
In the Spirit Passout Buy Liquidation
Where:
Halloween Superstores
Mass Merchant Seasonal Aisle
Supermarket
Drug
Dollar
Supermarket
Drug
What:
Costumes
Decorations
Party Supplies
Greeting Cards
CDs/DVSs
Pumpkins/
Carving Kits
Candy (novelty)
Candy (fun size)
Trick-or-treat supplies
Candy (leftover)
Decorations, costumes (for
next year)
Pre-Season Post-Season In Season
21
…Importantly, the occasions also were distinct in terms of the key influencers, thereby
informing future shopper marketing strategies and tactics – by account.
In the Spirit Passout Buy Liquidation
What:
PRE-TAIL
TV Advertising
Radio Advertising
Online Advertising
Circulars
Cooperative radio
advertising
Coupons
RETAIL
Seasonal Set
In-store Signage
Halloween Packaging
Feature and Display
Cross-merchandising (buy
costume, get DVD)
Feature and Display
Coupons
Liquidation Displays
Bargain bins
POST-TAIL
Social Networks
Blogs Online sweepstakes Rebates
22
Pre-Season Post-Season In Season
Conclusions
Offer a relevant
solution
At key
engagement points
along P2P
Increased traffic
and market
baskets
+
=
The Key to Success
23
Understand the
shopping
occasions
(mission, location,
navigation)
+
Understanding shopper occasions benefits all key stakeholders: a win-win-win
Shopper
Retailer Manufacturer/
Brand
Better shopping
experience
Increased foot traffic
and market baskets
Increased brand
purchase and loyalty
24
Speaker TBD
Copernicus Marketing Consulting and Research
Register Now: copernicusmarketing.com/webcasts
June 20, 2012
Charting the Shopper Journey
Mark Your Calendars!
Wednesday, June 20, 2012
JEFFREY MALOY, SVP
(203) 831-2375
Jeff.Maloy@copernicusmarketing.com
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